City Council

MINUTES SPECIAL JOINT MEETING OF CITY COUNCIL AND FINANCE ADVISORY COMMITTEE CITY OF DEKALB May 8, 2012 The City Council of DeKalb, Illinois, held a Special Joint Meeting with the Finance Advisory Committee on Tuesday, May 7, 2012 at 6:00 p.m. in the Council Chambers of the DeKalb Municipal Building, 200 South 4th Street, DeKalb, Illinois. Notice was given and the meeting was called pursuant to the provisions of Chapter 2, Section 2.05 of the Municipal Code of the City of DeKalb, Illinois. Mayor Povlsen called the meeting to order at 6:00 p.m. A. ROLL CALL: City Clerk Wright called the roll and the following members of City Council were present: Mayor Kris Povlsen, Alderman David Jacobson (arrived at 6:10 p.m.), Alderman Tom Teresinski, Alderman Kristen Lash and Alderman Ronald Naylor, Absent were: Alderman Brendon Gallagher, Alderman David Baker and Alderman Monica O’Leary Also present were members of the Finance Advisory Committee: David Conlin, Lon Clark, Connie Golden, Mike Peddle and Gary Peele. Absent was Ryan Gifford. Also present were: Mark Biernacki, City Manager; Rudy Espiritu, Assistant City Manager; Laura Pisarcik, Finance/Purchasing Director; Eric Hicks, Interim Fire Chief; T.J. Moore, Public Works Director; Joel Maurer, Assistant Director of Public Works – Engineering/Transportation; Jamie Smirz, Neighborhood Rehab Specialist/CDBG Coordinator; Mike Bauling, Project Implementation Engineer; Tom Cleveland, Assistant Director of Public Works – Airport; Bryan Faivre, Assistant Public Works Director – Water Resources Division; Mark Espy, Assistant Public Works Director – Operations/Maintenance; Brian Dickson, Transportation Planner; Jeff Birtell, I&T Technician; and Diane Wright, City Clerk. Mayor Povlsen announced that Ald. Baker was unable to attend the meetings this week due to business conflicts and Ald. Gallagher has a family conflict this evening. B. CONSIDERATION ITEM: 1. REVIEW OF PROPOSED FY-2013 BUDGET Ms. Espiritu announced that special funds would be discussed tonight. Ms. Pisarcik discussed the hotel/motel tax with a fund balance of $65,000 which is reduced from last year due to the 1% that is allocated to the Public Safety Building. City Council Special Meeting May 8, 2012 Page 2 of 4 Discussion ensued regarding the lobbyist being paid through the Economic Development Fund. Mr. Peddle pointed out that there needs to be a rationale why it is paid entirely through this fund. Mr. Peddle suggested that budgets from the DeKalb County Economic Development Corporation and the Visitors and Convention Bureau be provided to Council for their information in that monies are budgeted from the City for both agencies. Ms. Pisarcik went over the Refuse and Recycling Fund and advised that the contract with Waste Management with a current rate of $17.10 per month provides for an increase by 4% in July to $17.79 per month. She added that 8,767 accounts in the City pay for this service, and noted that 210 low income seniors do not pay for trash. The projected revenue is $1.8 million, she said. Also, she said, the Refuse and Recycling Fund will have an ending fund balance of $168,000. Ald. Jacobson arrived at 6:10 p.m. Mr. Maurer discussed the Transportation Fund and pointed out that with funding from the Illinois Department of Transportation (IDOT), the City was able to contract with Voluntary Action Center (VAC) to provide transportation services to residents. He noted that the General Fund’s impact will be reduced from approximately $25,000 to approximately $1,000. Also, he said, the partners in DeKalb-Sycamore Area Transportation Study (DSATS) are assisting with funding at this time. Mr. Maurer next discussed the Motor Fuel Tax Fund and pointed out that expenditures include salt, street lighting and electrical charges. Also, he noted, funds are budged for street patching, completion of the Fairview Drive bike path and completion of the Bethany Road bridge projects. Ald. Naylor strongly recommended that the City reduce the use of MFT funds for salt, etc. purchases and snow expenses. He urged that MFT funds be used for street patching and overlays. Additionally he said that the General Fund should pay for General Fund purchases. Ms. Pisarcik stated that staff has begun reducing the impact to the MFT. Discussion continued on the topic. Mr. Biernacki discussed the Tax Increment Finance Districts. He pointed out that this is the first year the property tax increment has dropped from previous years and noted that the EAV drops in the TIF area at a faster rate than the non-TIF areas. Mr. Biernacki stated that the annual street and sidewalk improvements will cost an estimated $480,000 in FY13 in the Central TIF area. Also, he said, the Egyptian Theatre is in year 2 of the two year program to install new seats and air conditioning. Additionally, Mr. Biernacki stated that $120,000 is budgeted for the public parking lots resurfacing and signage. Also, he said, the Ellwood House will be requesting funds from Council at the May 14th Council meeting to upgrade the Marion House to unify the campus with the Ellwood House. Also, Mr. Biernacki stated that staff recommends that a “place hold” of $100,000 be listed to use TIF funds to ameliorate the foreclosures in TIF. Ald. Teresinski noted that a street and alley inventory is needed. Ald. Naylor concurred and suggested that a consultant be hired to assist with this project. Mr. Biernacki next discussed the TIF II area. He noted that $320,000 is budged for street, alley  City Council Special Meeting May 8, 2012 Page 3 of 4 and sidewalk improvements. Mr. Biernacki pointed out that once the new Police Station is complete and the Police staff move there, the immediate remodel of the City Hall building must take place. He suggested that advance design work on this building be anticipated. He stated that staff has put a “place hold” for this expense. Additionally, he said, there are funds in this account for the cost sharing agreement with Founders Elementary School for the safety issue. Also, he said, the plan is if the current Resident Officer Program (ROP) is successful, the plan is to purchase another property in TIF II. Council discussed the TIF areas and asked that an inventory be prepared of the condition of streets, alleys and sidewalks. Ald. Naylor suggested that a contractor be brought in to assist staff. He added he would like to see streets, sidewalks and alleys upgraded before the program is over and would also like the water system in the areas looked at to determine if replacement of water lines is needed. Ms. Smirz discussed the Housing Rehab Fund which is a revolving loan fund. The fund continues to provide grant and repository of loan payments and recaptured funds. Next, Ms. Smirz updated Council and the Finance Advisory Committee on the Community Development Block Grant Fund (CDBG) which is appropriated through HUD who approves the budget. She noted that this year the fund will fund the single family owner-occupied rehab program, ten service agencies and will reinstate the first-time home buyer program. Mr. Espiritu asked that the Special Service Areas and Special funds be moved to tomorrow night so that Public Works staff could make their presentation. Mr. Moore went over the Administrative portion of the Public Works budget and answered brief questions from Council. Additionally, he discussed the proposed fiber optic project. Mr. Espy next presented the Operations-Maintenance-Utilities budget in Public Works. He did point out that custodial services will need to be addressed for the new Police Station. Mr. Espy discussed the budget figures for snow removal and salt with comparisons from this past, very light winter as opposed to the previous year. He provided the savings this past winter on overtime, salt, diesel and vehicle maintenance. Mr. Espy answered questions regarding his budget. Mr. Hiland presented the Planning and Economic Development budget. Also, Mr. Hopkins stated that he would like to see the City commence marketing itself externally next year. Additionally, he recommended expansion of some of the main shopping centers and bringing more retail to the City. Mr. Moore added that $12,500 is budgeted for marketing. Mr. Maurer presented the Building/Engineering and Transportation Division budgets. He discussed a fiber optics system which would be able to carry substantial data and presented three options for consideration. Council and the Finance Advisory Committee discussed this at length. Mr. Faivre next presented the Water Division budget and discussed a handout with units of water pumped and water sales. He noted that water sales continue to fall, with a 6% drop this calendar year. He projects an overall 4% decrease in water sales in FY13. Mr. Faivre pointed out that a 5% increase in water is effective November 1. Mr. Faivre discussed monies set aside for engineering services for water tower painting and two water main projects. Additionally, he discussed the Hollister water main replacement and other replacements needed. Council discussed at length the condition and replacement of water mains in the City. City Council Special Meeting May 8, 2012 Page 4 of 4 Mr. Cleveland presented the Airport budget and noted that the expected economic impact study from the State of Illinois will be delayed until June. He announced that the Airport received notice of a grant from Illinois Clean Energy Commission to upgrade indoor lighting in hangars and buildings. Council discussed the fund balance and transfers from the General Fund. Additionally, they revisited the idea of the regionalization of the Airport. C. ADJOURNMENT: MOTION Ald. Lash moved to adjourn the meeting; seconded by Ald. Teresinski. Motion carried on voice vote. Mayor Povlsen declared the meeting adjourned at 8:40 p.m. DIANE WRIGHT, City Clerk Approved by City Council May 29, 2012